December 11, 2019

Attempt to Increase MRR With Price Tier Change

Rik Schennink @rikschennink

95% of my customers purchase the "cheap" developer license shown below.

Developer license (109/year)

  • 1 developer
  • unlimited projects
  • normal support

Team license (449/year)

  • 5 developers
  • unlimited projects
  • priority support

After doing some customer research I noticed about 10% are existing SaaS products, 15% are start-ups (assuming from gmail/hotmail accounts etc.), near ly 75% of customers are web agencies. BUT nearly all of the agencies purchased the developer license.

The price of a team license should be far from shocking for a web dev agency (certainly when building multiple sites which agencies mostly do). To get more agencies to purchase the team license I decided to remove the "unlimited projects" option from the developer license. The developer license is still very suiting for startups and team license price should be very reasonable for profitable SaaS products.

By changing the price tiers to ones below I hope to make it better fit to my customers and see a change in purchase behaviour in the near future.

Developer license (129/year)

  • 1 developer
  • 1 project
  • normal support

Team license (499/year)

  • 5 developers
  • unlimited projects
  • priority support

Learnings for me. Things were going fine but I wasn't keeping a close eye on what kind of customers were buying. By monitoring that more closely I gained valuable insights into how to better position my product and price points.

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